Cashflow refers to the money going in and out of your business.

As long as you have enough money coming in to pay your expenses – and that includes paying yourself –your business can grow.

To manage Cashflow to your advantage:

• Make more sales and collect on them promptly.
• Control expenses.

Do these two things well, and profits will follow.

Drive Sales

Sales should be the main source of revenue for your business. But making a sale is not the same as collecting the money from the sale. Here are some tips to get the cash into your business.

• Require cash on delivery.
• Require a deposit if delivery is not made upon the confirmation of sale.
• Offer an early payment discount.
• Invoice as soon as the sale is made.
• Act on overdue accounts quickly with a policy that respects and keeps the customer.

Control Expenses

Expenses deplete your company’s cash. As my mother told me, a penny saved is a penny earned. Control expenses with these tips:

• Avoid purchases
  • use your client’s tools or borrow tools from friends or the Tool Lending Library
  • have your customers provide the cleaning products they want used in their home
  • Go with your customer to select and pay for flowers that you arrange.
• Compare prices to buy smart

Keep revenue flowing in and control your money going out and you not only have great cashflow, but you will also build more quickly towards a profit.